Here’s how we did on a couple of stocks last week…and what you can do on them next week. (April 26, 2019)

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IRBT MMM ISRG 

I want to follow-up on a couple of stocks that we have been doing this last week on these slam plays. iRobot ( NASDAQ: IRBT ), this was a trade that we were looking at a potential rebound here and it never came. I am pretty sure I did a Free Chart Video for non-members. The idea was, we had the setup where the stock got absolutely crushed and then the trigger would have been a move higher; never happened. So it’s not like I will just take a smaller position, no. If your trigger doesn’t fire, in other words, you see the setup but if the stock is not giving you the trade that you think you’re going to get, well don’t call an audible, just say, “I’m going to wait.”

So now the waiting, which is, we’ve learned this from Tom Petty, the hardest part, it looks like now it has traded sideways and we could be getting a move higher even Monday. So you get this 3-day rule, the smart money sold here but let’s just say the big institutional money sells here, the follow-up money sells here and by the third day of selling only the suckers are left to be cleared out, the ones that were holding the stock until they couldn’t hold it anymore. I think that is what is going to happen today.

I would look at the high of $145.00 as kind of like a line in the sand. I would say your trigger here is 150.00. If the stock trades above 150.00 go long; give it literally 1.5 percent. If the stock is truly rebounding, it’s not going to revisit this area down here. So buy it at 150.00, I see it is even trading above that after hours, hurry buy it now; No, look for this stock to move up here, I would look for $4.00 or $5.00. Seriously, the way this is so oversold I am looking for $4.00 or $5.00 on that.

And then also, just one more, 3M ( NYSE: MMM ), M and M and M, another one where you had a slight little fakeout here and then nothing really materialized from it. I think you are going to get a snap next week. I would use, here, the intraday high, 192.25. So I would say, Alert, 192.25; if the stock starts trading above 192.25, I think this is good for 2 or 3 percent.

Now, you might say, “Well, 2 or 3 percent, come on Dan.” Guys, this is a specific kind of trade, that’s all you are looking for; you are looking for these high probability trades. If you can get 2, 3 percent, 4 percent, for crying out loud, that’s a home run because they’re high probability trades. And with respect to the risk you’re taking you are going to say, “I’ll give it a 1 percent stop, 1.5 percent stop so your risk is actually very small. If I have a 500 batting average and I am losing 1.5 percent on my losers and I am making 2.5 percent on my winners; that’s a winning trading system. That’s what we want to do here.

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